Two minutes with Saks pres Robert Wallstrom

By: David Reich-Hale October 30, 2008Comments Off on Two minutes with Saks pres Robert Wallstrom

It was opening night at Saks Fifth Avenue Off 5th’s third Long Island store, this one at the new Tanger Outlets Center in Deer Park. As models strolled around and shoppers stuffed their faces with sliders and pretzels, Wallstrom, the president of Saks Fifth Avenue Off 5th, found time to talk about why Long Island is an ideal market for the chain.

How many Saks Fifth Avenue Off 5th stores are in operation?

We have 48 and Deer Park is 49. We are also opening two more next month, one in St. Augustine, Florida, and another in Texas. We’re also opening three more next year. One is in San Antonio, a second in Reno-Sparks, Nevada and the third is in the Cincinnati area.

Of the 49, three are on Long Island. Yes, we have one at The Source Mall in Westbury and the other one is in the outlet center in Riverhead.

Is this a tough time to open a store?

Well, we’re expanding because our stores are doing well. The interesting thing about our business model is we can adapt, depending on how a store is doing. We have large stores and we have small stores, and the inventory isn’t necessarily the same in every store. It’s a flexible model, which always helps and it certainly helps in a bad economy.

Who is the typical Saks Fifth Avenue Off 5th shopper?

The average shopper is slightly younger [than the typical Saks Fifth Avenue shopper] and is looking for luxury. The average shopper also has a family income of about $100,000.

That’s just about everyone on Long Island. Yes, that’s why we like Long Island.

Is there anything special about this store?

This is our second prototype, with our other one being in Orlando. But this one is very important because our vendors can see it. Being in the fashion industry, about 75 percent of our vendors are in New York and all they’ve really experienced is our older model. The Deer Park store gives them a chance to see what our new prototype is all about.

Forgive me, but what is it all about?

Everything can be moved. The fixtures, even our cash registers are on casters. Only our fitting rooms can’t be moved. We can move an aisle or we can shrink or expand a department in minutes. We’re also trying to give our shoppers a specific experience, the same way that if you walk into a Ralph Lauren or J. Crew store, there is a specific experience. We feel like with our new prototype, we can do the same thing for a multilabel retailer.

Is the merchandise from Saks?

Twenty five percent of the merchandise was at Saks. The rest comes from our vendors, but we ask them to create products for the Off 5th stores.

How many people are working in this store?

Approximately 70 people will work here and we’re always looking for great talent. With this new prototype, we’ve doubled the number of salespeople. With the old clearance model, it’s really self-serve. That’s what people expect. Here you should be able to find an associate to help you.